The Smart Team of NOVA® Home Loans

MBS Day Ahead: Last Trading Day of The Week in Brave New World

Posted To: MBS Commentary

This holiday-shortened 3.5-day trading week has quickly become a brave new world for bond markets. Actually, it might be better characterized as a return to the same old world that has been in play in some form or another since the financial crisis. In this world, there's a big-picture fundamental justification for the decades-long bull market in bonds to remain intact. From 2008-2013, it was the US financial crisis and Fed QE response. That overlapped with the European systemic crisis and QE response from 2010-present. With the European Central Bank set to end QE (probably?) this year and with the Trump administration ostensibly connoting increased growth and inflation prospects, the decades-long bull market in bonds was called into question in a big way in the end of 2016. The only major…(read more)

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Source: Mortgage News Daily

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